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Essential Year-End Tax Strategies for WESCO International Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for WESCO International WESCO International typically partners with various health insurance providers to offer health benefits to its employees, including major insurers such as UnitedHealthcare and Anthem. The exact provider can vary based on the specific plans offered and the location of the employees. Potential Healthcare Cost Increases in 2026 As we approach 2026, healthcare costs are anticipated to rise significantly, particularly for those relying on Affordable Care Act (ACA) marketplace plans. With reports indicating that some states may face premium hikes exceeding 60%, the overall trend spells trouble for consumers. The expiration of enhanced federal premium subsidies, coupled with rising medical costs and aggressive rate hikes from major insurers, could cause out-of-pocket premiums to soar by over 75% for many enrollees, straining the budgets of millions and necessitating careful financial planning in the months ahead. Click here to learn more

Here are some things for WESCO International employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
WESCO International employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a WESCO International employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
WESCO International employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a WESCO International employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a WESCO International employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for WESCO International employees to request a Form W-4 change and for their employers from WESCO International to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by WESCO International employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a WESCO International-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, WESCO International employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a WESCO International-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a WESCO International employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and WESCO International-sponsored retirement plans (special rules apply if you're still working and participating in WESCO International's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
WESCO International employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a WESCO International employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

What is the purpose of the 401(k) plan offered by WESCO International?

The purpose of the 401(k) plan offered by WESCO International is to help employees save for retirement by allowing them to contribute a portion of their earnings on a tax-deferred basis.

How can employees at WESCO International enroll in the 401(k) plan?

Employees at WESCO International can enroll in the 401(k) plan by completing the enrollment process through the company’s benefits portal or by contacting the HR department for assistance.

What types of contributions can employees make to the WESCO International 401(k) plan?

Employees can make pre-tax contributions, Roth (after-tax) contributions, and may also have the option to make catch-up contributions if they are age 50 or older.

Does WESCO International offer any matching contributions to the 401(k) plan?

Yes, WESCO International offers a matching contribution to the 401(k) plan, which helps employees boost their retirement savings.

What is the vesting schedule for WESCO International's 401(k) matching contributions?

The vesting schedule for WESCO International's 401(k) matching contributions typically follows a graded vesting schedule, which means employees earn ownership of the match over a period of time.

Can employees at WESCO International take loans against their 401(k) savings?

Yes, employees at WESCO International may have the option to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What investment options are available in the WESCO International 401(k) plan?

The WESCO International 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their portfolios.

How often can employees change their contribution amounts to the WESCO International 401(k) plan?

Employees at WESCO International can typically change their contribution amounts at any time, subject to the plan's guidelines.

Is there an automatic enrollment feature in WESCO International's 401(k) plan?

Yes, WESCO International may offer an automatic enrollment feature, which automatically enrolls eligible employees in the 401(k) plan at a default contribution rate unless they choose to opt out.

What is the minimum age requirement for participating in the WESCO International 401(k) plan?

The minimum age requirement for participating in the WESCO International 401(k) plan is generally 21 years old.